As UK household debt continues to rise, more than 8.5 million people are facing serious financial struggles in 2024. Projections for 2025 suggest this trend will only worsen.
Despite this, £23 billion in available support is set to go unclaimed this year – money that could help people regain control of their finances. Key barriers such as lack of awareness, complex systems and stigma prevent people from accessing the help they’re eligible for.
This webinar, tailored for customer vulnerability leads in the credit and collections sector, explored these challenges, highlighted the need for earlier intervention and discussed why signposting to support alone is not enough.
We discussed how creditors can integrate proactive tools like benefit calculators into customer journeys at the pre-arrears stage, boosting financial resilience.
Listen back to hear:
- Thomas Monaghan, Citizens Advice, reflecting on 85 years of support and the growing need for their services
- Daniel Calcott, Digital DRA, discussing how their transparent digital tools empower customers to resolve debt with dignity
- Diana Kamil-Salmon, Fair4All Finance, exploring how to support vulnerable segments, boost basic bank account outcomes and enhance credit unions’ and CDFIs’ role in the declines journey
- Ed McNamara, Policy in Practice, showcasing the Better Off Calculator and how it removes barriers to help people access unclaimed benefits and support
- Stuart Bungay, Policy in Practice, hosting the session drawing on his industry expertise
View the webinar
There’s a common misconception that people fully understand their financial situations when seeking advice. In reality, many aren’t sure what specific help they need. One of the biggest challenges is ensuring that clients don’t have to tell their story repeatedly. A smoother, more integrated approach among advice organisations would make a huge difference.
We've spent a lot of time positioning ourselves as a support partner to clients. The challenge arises when we're introduced as a last resort escalation. This framing can create a negative perception and add barriers to customer engagement. By introducing us as a supportive resource from the outset, we make the transition smoother and ultimately more effective for the customer.
A lot of people are applying for loans for consolidation lending purposes and we'd love to see lenders and financial services doing more. We've been working closely with organisations like Policy in Practice to fund the integration of benefit calculators into lending journeys and because we know the drop off rates can be high when it's just a link on a website where it's hard to find.